The past few weeks have showcased numerous signals that the real estate market is on the rise. Recent statistics point to an industry turn around, including a 15 percent rise in housing starts in September; a surge in builder confidence in October, an increase in mortgage applications, and a slew of regional market improvements across the country ].

According to sales numbers reported in September, August's existing home sales increased 3.5% vs. July's results to a 5.03 million home annual run rate. The weakest region was the West with a 13% year over year decline in prices and the strongest region was the South with a 0.8% decrease.

In a recent article entitled” It’s Time to Buy That House”, the WSJ told their subscribers:

“It’s an excellent time to buy a house, either to live in for the long term or for investment income…Houses aren’t the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.”

MarketWatch.com (the on-line blog for WSJ) told their readers:

“Now could be the best time in history to buy a home.”

Feature on Forbes.com

In a report to their subscribers, Capital Economics reported that:

“The previous declines in house prices and the more recent drop in mortgage rates to record lows have created an unusual situation in which the median monthly mortgage payment is more or less the same as the median rental payment.”

Why is this important? Last week, Forbes explained to their readers:

“If rents simply kept up with inflation at a 3.2% annual increase, a $1,500 rent payment would cost that renter nearly $900,000 over the next 30 years. The same $1,500 payment made to their mortgage would be only $540,000 (because the payments don’t increase with inflation).”

They went on to explain the advantages of homeownership during retirement:

“Even with a dismal 1% growth rate over 30 years, a $300,000 property would appreciate well over $100,000 giving the homeowner an additional nest egg for retirement…

Comments

I'm seeing more and more broad market news being reported as positive which I think will help the local mentality quite a bit. In the strong markets, broad good news just bolsters the market more. In the weaker markets, this news should help speed the recovery.